Oil & Energy
US Treasury Expands Iran Pressure Campaign With Iraq Oil, Militia Sanctions
The US Department of the Treasury's Office of Foreign Assets Control on Thursday unveiled sanctions targeting Iraq's deputy oil minister Ali Maarij Al-Bahadly and Iran-backed militias as Washington intensified pressure on Tehran, it said in a statement.The Treasury Department alleged that Al-Bahadly used his role in Iraq's oil ministry to divert oil revenue toward Iran-linked militias and sanctioned oil trader Salim Ahmed Said.Sanctions were imposed on three senior figures tied to Iran-aligned terrorist militias Asa'ib Ahl Al-Haq and Kata'ib Sayyid al-Shuhada over attacks targeting US personnel, diplomatic sites and businesses across Iraq.Treasury Secretary Scott Bessent alleged that Iran exploited Iraq's oil resources to finance terrorism."Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners," he said.The Treasury Department said the actions were taken pursuant to Executive Order 13902, targeting key sectors of Iran's economy, including Iran's petroleum sector, and EO 13224, as amended, which targets terrorist groups, their supporters, and those who aid acts of terrorism.It added that Al-Bahadly helped Said secure export rights for Iraqi oil shipments and approved trucking operations worth millions of dollars daily from the Qayarah oil field to Khor Zubayr.OFAC designated Said in June 2025 for running a network of companies selling Iranian oil falsely declared as Iraqi oil to avoid sanctions, according to the statement.It alleged that Iraq-based VS Oil Terminal mixed Iranian crude with Iraqi oil before the shipments were exported to global markets, using "forged" Iraqi government paperwork to disguise the oil's origin.The Treasury Department sanctioned Asa'ib Ahl Al-Haq official Mustafa Hashim Lazim Al-Behadili, also known as Sayyid Awn, for running oil smuggling operations and coordinating Iranian oil shipments with the Islamic Revolutionary Guard Corps-Qods Force.Treasury designated four Iraqi companies tied to Al-Behadili, including Gulf Energy Oil Services, Gulf General Contracting, Iraq International Energy for the Import and Sale for Petroleum Products, and Gulf Energy for General Transport and Marine Services and Real Estate Consultancy.Treasury also sanctioned former Kata'ib Sayyid al-Shuhada deputy secretary general Ahmed Khudair Maksus Maksus and senior official Mohammed Issa Kadhim al-Shuwaili over weapons transfers involving Hizballah.The sanctions block all US-based property and financial interests tied to designated individuals and entities, while US persons generally cannot conduct transactions involving blocked assets without OFAC authorization.Treasury said US and foreign individuals, companies and financial institutions could face civil or criminal penalties for sanctions violations, while foreign banks risk secondary sanctions for facilitating significant transactions involving designated parties.The department said its Economic Fury campaign has already disrupted billions of dollars in expected Iranian oil revenue."Treasury is aggressively advancing Economic Fury and has disrupted billions in projected oil revenue, taken actions that have led to the freezing of nearly half a billion dollars in regime-linked cryptocurrency, and cracked down on Tehran's shadow banking networks," it said.It also warned foreign firms, airlines and banks that support Iranian trade networks could face sanctions, including institutions connected with China's independent teapot oil refineries.Any vessel or individual entity that helps transport Iranian oil through covert shipping or financial channels risks US sanctions, as Washington targets sanctions evasion schemes and digital asset networks.It added that the US-imposed maritime blockade "is directly targeting the regime's primary revenue stream, and any person or vessel facilitating the illicit flow of oil or other products risks exposure to US sanctions."